Home – New Forums Money matters Pty ltd vs sole trader Reply To: Pty ltd vs sole trader

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Scottypope, post: 265666, member: 114662 wrote:
I think starting out it may be better sole trader as the expenses are limited to income tax on the turnover ( depending on the tax bracket I would be in ) , also with all the income at my own disposal , as a pose to the income going into the company , then paying a percentage of it as my wages , personal PAYG , company tax , gst and super etc ,( I would always have work cover regardless )

I’m confused by a couple of things here.

GST would be the same if you are a company or sole trader. Or am I missing something.

PAYG is still tax on your income if you are a sole trader or company (via wage).

Super, yes is compulsory if paying wages from your company, but as a sole trader you should for your own benefit contribute anyhow.

I think you should urgently go see an accountant and go through your specific scenario, to determine the best way forward, taking advise from a forum on something as important as this is fraught with danger to your hip pocket.